(iv) Does not involve use, storage, or disposal of any grouping or
classification of materials that the United States Secretary of Transportation or the
State or any local governing body designates as a hazardous material.

(b) (1) The provisions of this section relating to family day care homes do not
apply to a homeowners association that is limited to housing for older persons, as
defined under the federal Fair Housing Act.

(2) The provisions of this section relating to no-impact home-based
businesses do not apply to a homeowners association that has adopted, prior to July 1,
1999, procedures in accordance with its covenants, declaration, or bylaws for the
prohibition or regulation of no-impact home-based businesses.

(c) (1) Subject to the provisions of subsections (d) and (e)(1) of this section, a
recorded covenant or restriction, a provision in a declaration, or a provision of the
bylaws or rules of a homeowners association that prohibits or restricts commercial or
business activity in general, but does not expressly apply to family day care homes or
no-impact home-based businesses, may not be construed to prohibit or restrict:

(i) The establishment and operation of family day care homes or
no-impact home-based businesses; or

(ii) Use of the roads, sidewalks, and other common areas of the
homeowners association by users of the family day care home.

(2) Subject to the provisions of subsections (d) and (e)(1) of this section,
the operation of a family day care home or no-impact home-based business shall be:

(i) Considered a residential activity; and

(ii) A permitted activity.

(d) (1) (i) [Subject] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF
THIS PARAGRAPH AND SUBJECT to the provisions of paragraphs (2) and (3) of this
subsection, a homeowners association may include in its declaration, bylaws, or
recorded covenants and restrictions a provision expressly prohibiting the use of a
residence as a family day care home or no-impact home-based business.

(II) A HOMEOWNERS ASSOCIATION MAY NOT INCLUDE A
PROVISION DESCRIBED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH EXPRESSLY
PROHIBITING THE USE OF A RESIDENCE AS A FAMILY DAY CARE HOME IN ITS
DECLARATION, BYLAWS, OR RECORDED COVENANTS AND RESTRICTIONS UNTIL THE
LOT OWNERS, OTHER THAN THE DEVELOPER, HAVE 90% OF THE VOTES IN THE
HOMEOWNERS ASSOCIATION.

[(h)] (III) A provision described under subparagraph (i) of this
paragraph expressly prohibiting the use of a residence as a family day care home or
no-impact home-based business shall apply to an existing family day care home or
no-impact home-based business in the homeowners association.

(2) A provision described under paragraph (1)(i) of this subsection
expressly prohibiting the use of a residence as a family day care home or no-impact